Who Buys In Iceland
Since the start of Icelands tourism boom, most of its foreign buyers have been European, many from Britain, France and Scandinavia, Mr. Stefansson said. Most of his firms foreign buyers hunt for second-home apartments in downtown Reykjavik or properties in the countryside.
Ms. Valsdottir said her foreign clients do the same, adding that North Americans have become increasingly interested in the market. She works with many Canadians as well as U.S. citizens.
Student Apartments & Rentals In Reykjavik
Iceland is a great place to study, and the capital city in Iceland is the best place in which to do it. The university here is internationally accredited and the city itself is small enough to navigate easily for new students. Student accommodation in Reykjavik is very central and close to the university campus, so students can easily walk to class from the dorms.
The nightlife in Reykjavik is extremely good and diverse, especially considering how small the city is. If students crave something a little more independence when choosing their accommodation there are also plenty of options for private rents in shared apartments across the city.
Permission From The Minister
If a prospective purchaser is neither an Icelandic citizen nor a foreign national domiciled in Iceland and does not enjoy rights under the agreements mentioned above, an application may be made to the minister for permission to acquire the right of ownership or use of property in Iceland. The minister may grant permission to deviate from the conditions of the first paragraph of Article 1 of the Act on the Right of Ownership and Use of Real Property in two types of instance , i.e.:
1. in accordance with applications from natural or legal persons for which it is necessary to acquire the right of ownership, or the right of utilisation, over properties and the appurtenant property rights for direct utilisation in their business operations,
2. in accordance with an application from a natural person if he or she is considered as having a close connection with Iceland, e.g. by reason of marriage to an Icelandic citizen.
Permits granted by the minister shall pertain to a specific property, the size of which shall not exceed 3.5 hectares, and the applicant may not own other properties in Iceland.
Permits under the second paragraph of the article may not be issued to foreign states, government authorities, state-run enterprises or other foreign public bodies foreign states are permitted to acquire real property for their embassy offices, the residences of senior embassy staff and apartments for other embassy employees.
In applications, the applicant shall:
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Beautiful Home On Sklavrustgur Near Hallgrmskirkja Church Just Hit The Market
By Staff|Aug 29 2018
Skólavörðustígur 29 A coupe of blocks from Hallgrímskirkja church. Photo/Miklaborg realtors
The small balcony Not a bad place to drink your morning coffee! Photo/Miklaborg realtors
Back entrance The entrance to the basement apartment is located in the back yard. Photo/Miklaborg realtors
If you are in the market for a dream house in downtown Reykjavík you should check out Skólavörðustígur 29 which just came on the market. Áslaug Friðriksdóttir, former city councillor for the conservative Independence Party, is selling the more than 100 year old home on one of Reykjavík’s busiest thoroughfares.
The house which is 210 m² and is divided into 10 rooms which are split into two seperate apartments.
The main apartment on the first and second floors has two entrances, one to Skólavörðustígur street, and a back entrance which opens to the small sunny backyard. The basement apartment has a seperate entrance from the back yard.
According to the listing the house is in good condition, recently renovated and painted. The house does not have a listing price, instead the realestate agent is asking for offers. The property tax estimate is 77,150,000 ISK .
For more information, head over to the full listing on Vísir.is.
The first floor sitting room:
The dining room:
The roomy and sunny first floor has a small TV nook:
Spartan Scandinavian elegance:
A place to read, or watch TV:
One of two bedrooms on the second floor:
The bedroom window overlooks the back yard:
Building Your Property In Iceland Real Estate
Most Icelanders will tell you that their family homes were constructed by their ancestors. If you are not too keen on looking at the houses for sale in Iceland and are more inclined towards building one, you must get a building permit from the municipality. However, you cannot build your property near the national parks of Iceland including the Vatnajokull, Thingvellir, and Snaefellsnes areas.
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Regulation On The Rights Of Persons Covered By The Eea Agreement
If the prospective purchaser or lessee enjoys rights in Iceland under the rules of the Agreement on the European Economic Area , or the EFTA Treaty, i.e., as regards the free movement of people, the right of establishment, the provision of services or the movement of capital, or those of the Hoyvík Agreement between Iceland and the Faroes, he or she may own property in Iceland without a special permit after meeting certain requirements .
Regulation No. 702/2002 applies regarding rights under the EEA Agreement and the EFTA Treaty see also the English translation of the regulation.
In these cases, a declaration must be filled out and submitted for registration together with the purchase contract or lease. Sample declarations are appended to the regulation. Declarations shall state that the individual/association/institution in question meets the requirements made of those who enjoy these rights under Regulation No. 702/2002.
Raising The Bar In Reykjavk
Austurhöfn sets a new standard in Reykjavík apartments regarding ambitious services to the residences. An employee of the complex will take care of cleaning and maintenance of all common areas. Residences will also have access to services at the 5star Reykjavik Edition hotel next door on special terms, e.g. housekeeping, cleaning and laundry services, transportation, concierge and room service and access to the luxury fitness and spa area. On top of that the location offers great accessibility to various services nearby like the foodhall and shops on the first floor of Austurhöfn.
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Beautiful 110 Year Old Home In Grjtaorpi Neighbourhood Downtown Reykjavk For Sale
By Staff|Dec 6 2016
Grjótaþorpið, the “Village of Grjóti” The oldest neighbourhood in Reykjavík, Grjótaþorpið was to be torn down in the 1960s. Artists moved in and restored the old buildings, saving this historic neighbourhood. Photo/Helgafell.
One of the old houses in the historic Grjótaþorpið neighbourhood is up for sale. Grjótaþorpið is the oldest neighbourhood in Reykjavík, a collection of 19th century and early 20th century wooden houses located in the center of town. Vesturgata 5A: You cant find a private residence closer to downtown than this. The realtor does not list a price for the 130 sq m , two bedroom property, but encourages interested buyers to make reasonable offers. The tax assessment of the property is 59.1 million ISK .
Read more: Gorgeous apartment in one of the most beautiful houses in downtown Reykjavík for sale
The house, built in 1906, is divided into two small apartments, each with their separate entrances. On the main floor and the attic a 71 sq m apartment: Most of the main floor has been opened up to create a large open space, where the kitchen opens into the dining- and living rooms. This large open space opens to a spacious porch/balcony.
On the second floor a large bedroom with a walk-in closet and a new bath and a smaller balcony with a view over the neighbourhood. The basement has been turned into a 59 sq m one bedroom apartment.
The living room The entire first floor has been opened up Photo/Helgafell
Foreign Nationals’ Real Property Rights
The conditions for being able to own property in Iceland are laid down in the Act on the Right of Ownership and Use of Real Property, No. 19/1966.
These state that:
- All Icelandic citizens, and foreign nationals who are domiciled in Iceland, are permitted to own real property in Iceland.
- Special rules apply to foreign nationals who enjoy rights under the Agreement on the European Economic Area, the EFTA Treaty or the Hoyvík Agreement between Iceland and the Faroes on meeting certain conditions, they are not obliged to obtain permission from the minister.
- The minister of justice may, when certain conditions are met, issue permits granting the right of ownership or use if those proposing to purchase real property are foreign nations who are neither domiciled in Iceland nor enjoy rights under the agreements mentioned above. Permits are not required, however, in cases involving the leasing of property or of the right of use thereof when the lease period, or term of other rights, is three years or less, or where less than one years notice of termination is required.
- Special rules apply to legal persons.
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Introduction To Iceland’s Real Estate Market
As Iceland continues to enchant foreign visitors imaginations, many begin to fantasize about staying in the country far longer than the mere duration of their holiday.
Some will even go a step further, seriously contemplating whether they could live on the island permanently. This dream should come as little surprise, given the endearing effect that Icelandic society often has on people.
Consider the lack of crime, the strong educational and healthcare systems, the incredible natural landscapes, the friendly local population. These things and more draw people toward a longstanding relationship with the country, a relationship that many would like to take to the next level.
Purchasing property in Iceland is arguably the greatest commitment that one can make towards this small island. Whether one is looking to purchase property here to establish a permanent residence or hoping to rent out a property to foreign guests or local Icelanders, the Icelandic housing market is one of ever-changing opportunities.
The Window To The World
For centuries Icelanders were isolated from the outside world and utterly dependent on maritime traffic for all imports and travel. Reykjavík harbour, where Austurhöfn now sits, was the beating heart of the fledgling city. Through here came foreign and exotic new ideas and influences, and this legacy still is evident in the vibrant and cosmopolitan nature of the neighbourhood. Fine dining and high culture are in abundance within walking distance, as is the very latest in contemporary art and music, not to mention the famous Reykjavík night life.
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Long Term Rooms And Flatshares In Reykjavik
The hub of Icelands government, business and infrastructure is also the northernmost capital on the planet. The small size of the capital means that transport around the city is very good, from a suburb on the outskirts you can be in downtown in less than twenty minutes. If you travel in the other direction, you can be watching the majestic glaciers in under an hour!
To find a room with a view Reykjavik, then look to the little town on the outskirts called Seltjarnarnes. The neighborhood is surrounded by the sea and many properties in the village have an ocean view. The town itself holds the Gretta lighthouse and is a tourist attraction in itself. Transport to the center of Reykjavik from Seltjarnarnes should take no more than 30 minutes.
One of the cheapest options in terms of price is to rent a room in Reykjavik in a shared apartment. As the city itself is pretty expensive, even by European standards, funding an entire apartment on one salary can be challenging. That’s why many people choose to share an apartment with friends or colleagues.
To rent a room in Reykjavik is also a great way to find a new social group, which is especially important for those people moving to the city without many contacts. Rooms in Reykjavik are easier to come by than entire apartments, as many people have a spare room or two that they dont mind subletting to expats for a share of the rent.
Real Estate Agents In Iceland
For those looking to purchase property in Iceland, a local and English-speaking real estate agent will likely be necessary, if only for the insider knowledge and purchasing opportunities they can bring to the table. However, this does entail extra costs.
The real estate agent’s fee can be between 1.5% and 2.4% of the propertys overall cost. On top of that, the stamp duty rate for property transfer comes out at 2000 ISK, added to 0.8% of the official property value. Finally, the cost of registering the property will be 0.1% of the property value.
Below are a few examples of English-speaking real estate agents in the capital.
AS FasteignasalaFjaroargotu 17, Reykjavík, IS-220, Iceland, ISTel: +354 05 20 2600Email: firstname.lastname@example.org
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Buying A House In Iceland
Property buying transaction costs are very minimal from 2.40% to 3.40%. The buyer shoulders all costs when buying property, which include real estate agent’s fee, stamp duty, and registration fee. Real estate agents commissions are 1.5 to 2.5 percent of the sales price, with a value-added tax of 25.5 percent on the commission. Transaction costs include a stamp duty equal to 0.8 percent of the homes official government valuation, according to Andri Sigurdsson, a licensed broker for REMAX Lind Iceland. He added that most mortgage lenders charge origination fees of 0.5 to 1 percent of the amount borrowed.
Building Property In Iceland
This DIY approach to house-building has, naturally, become far more regulated over time. However, opportunities are still widely available for those looking to begin their journey with nothing but an empty lot, some blueprints, and a head full of ideas.
To build, rebuild, or alter a property with extensions, one must obtain a building permit from the local municipalitys inspector. The building inspector will converse with varying committees to ensure the renovator meets all construction regulations before providing a permit.
Building property with any of the national parks in Iceland, including Þingvellir, Vatnajökull, and Snæfellsnes, is prohibited due to the need to preserve each area’s respective natural environment.
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Real Estate Prices In Iceland
Average house prices and their rate of inflation vary wildly between Icelands different regions. For one, this is following the population trends in each respective area. And yet, given the market’s flexibility, any prospective buyer should understand that these rates continue to evolve in different directions, mainly due to four primary motives.
The four major driving factors of the real estate market are the current economy, interest rates, demographics, and government subsidies. Prospective buyers should consider all of these before going forward on a proposed investment.
As explored in our previous articles, How To Move To Iceland | The Ultimate Guide and How To Find a Job in Iceland, relocating to another part of the world takes much consideration to surpass seemingly insurmountable obstacles.
One of these is the current trend of soaring prices, a pattern fuelled by Iceland’s ever-increasing influx of visitors. In 2017 alone, the entire countrys residential property price index nearly tripled from 8.06% in the previous year to a whopping 23.15%.
As should be expected, properties in the capital, Reykjavík, are more expensive than those situated in Icelands smaller towns. In 2019, the prices of a single-flat home in Iceland increased by 2.37%, while a multi-flat came in at just under 3.47%. Currently, the average residential property in the capital is between 40 million ISK to 50 million ISK .
Purchasing Property As A Foreigner In Iceland
When we look at where the visitors traveling to Iceland are coming from, the majority hail from the United States of America , with guests from the UK , Germany , Canada , France and China following.
These figures reflect property buyers in Iceland, with Americans taking the crown for their purchasing interest. Of particular note is the sheer number of Icelanders living abroad who choose to purchase a second home in their mother country. Second-property purchases have undoubtedly increased since Iceland’s economic recovery following the 2008-2011 financial crisis.
- See also: 13 Reasons To Visit Iceland
One of the overarching rules which apply to foreign and prospective property owners is the need to gain approval from the Ministry of Justice in Iceland. The ministry deals with a wide range of civic action, including human rights, immigration, policing and personal rights, elections, etc.
Housing Financing Fund claims that EEA citizens legally domiciled in Iceland can purchase real estate like any natural-born citizen. To secure a residence permit, one must apply to the Icelandic Directorate of Immigration.
For those with no intention of residing in Iceland, it is still possible to purchase a property if they seek special permission from the Ministry of Justice.
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A Penthouse Apartment With A View Over Snfellsjkull Glacier For Sale
By Staff|Jul 9 2014
The penthouse apartment is located on Klapparstígur street, down-town Reykjavík.
The flat has a stunning panoramic view.
A view over the city.
One of three balconies comes with a jacuzzi.
A penthouse apartment in down-town Reykjavík is for sale for 66 million krónur . The flat is 118 square metres in size, has two bedrooms, one bathroom and a spacious living room and kitchen and three balconies with panoramic views over Reykjavík city, the Esja mountain range and Snæfellsnes peninsula.
Investing In Iceland Real Estate
Rental Income: Nonresidents earning rental income are taxed at a flat rate of 20%. Only 70% of the gross rent is taxable for income earned from leasing residential properties.
Capital Gains: Capital gains are taxed either as business income.
Inheritance: Inheritance, tax is imposed on the share of the beneficiary at 10%, with an exemption for the first ISK1,500,000 of the share.
Residents: Residents are taxed on their worldwide income.
A great site for investors where you can find independant statistics about Iceland can be found at
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